India's exports of aquatic products, leather and textiles showed negative growth in 2007
On Wednesday, Indian Minister of Commerce Rajya Sabha said that as of December 2007, India’s exports of aquatic products, leather, textiles and handicrafts showed negative growth due to the sharp appreciation of the Indian rupee against the US dollar. Products showing negative growth in exports include: tea (-9.4%), cashew nuts (-9.9 per cent), food and vegetables (-32.3%), aquatic products (-50.1%), handicrafts (-75.5%), carpets (- 37.5%). He said that the appreciation of the rupee has had a severe impact on labor-intensive industries. He said that the main reason India’s trade deficit widened to 57.8 billion US dollars was the increase in imports of capital goods and raw materials, the increase in prices of petroleum products, and the lower growth rate of exports than imports. He said that some people are now proposing to amend the 1992 Foreign Trade (Development and Management) Law to include quantitative restrictions on imports as a special protection measure.